Term Certificates

A term certificate is a type of savings account offered by financial institutions. Banks call them certificates of deposit (CDs), and credit unions (like Sunward) call them term certificates. Generally, when you open a term certificate, you agree to keep your money in that account without taking a withdrawal for the term (i.e., the time period) specified for the certificate.

In return, you’ll earn a designated dividend rate for the entire term. Typically, this rate is higher than a basic savings account can offer. The term’s end date is called the maturity date, and the 10 days that follow that date are known as the grace period. During the grace period, you can close out the certificate and withdraw or move the funds. If you do nothing during the grace period, the certificate typically will renew at the same term, although the interest rate may have changed from when the certificate was first opened.

Note that in most cases, withdrawing money early (i.e., before certificate’s maturity date) means paying a penalty fee. Make sure you can commit to leaving the funds untouched for the duration. Consider your overall financial goals, risk tolerance, and liquidity needs before making any investment decision.

• Guaranteed return at maturity. With a fixed rate and specific terms, you can expect a stable, predictable return on your investment.
• Higher dividend rates. Your money could grow at a faster rate with an Sunward term certificate. Our certificates offer higher dividend rates than typical savings accounts, especially for longer-term deposits.
• Safety. Our term certificates are federally insured through the National Credit Union Association (NCUA) up to $250,000, which provides an added layer of protection for your funds.
• Diversification. Term certificates can be a great component of a diversified investment portfolio. By depositing some of your funds in a term certificate, you can balance risk and potentially enhance your overall investment strategy.
• To reach a financial goal. A term certificate can be useful to reach specific savings goals, such as a down payment on a house, a vacation, or other big purchase. Choose a certificate that aligns with your savings timeline to ensure that the funds are available when you need them.